The market for district cooling was valued at USD 4.61 Billion in 2015, and is projected to grow at a CAGR of 13.19% from 2016 to 2021. The base year considered for the study is 2015, and the forecast period is from 2016 to 2021.

The objectives of the report are as follows:

To define, segment, and project the size of the global district cooling market on the basis of production technique, application, and region

To provide information about the key factors influencing the growth of the market (drivers, restraints, opportunities, and industry-specific challenges)

To strategically analyze micromarkets1 with respect to individual growth trends, future prospects, and their contribution to the total market

To analyze opportunities in the market for stakeholders and provide a competitive landscape of the market leaders

To project the size of the market in terms of value and volume, with respect to four main regions (along with their respective key countries), namely, Americas, Europe, Asia-Pacific, and Middle East & Africa

To track and analyze competitive developments such as contracts & agreements, expansion, joint ventures, mergers & acquisitions, partnerships, and research & development in the district cooling market

The research methodology used to estimate and project the market size included the ‘top-down’ and ‘bottom-up’ approaches. The total size of the district cooling market was calculated and accordingly, weightages were provided for various segments. This was done on the basis of extensive primary interviews and secondary research based on the information available on websites of various associations such as International Energy Agency (IEA), International District Energy Association (IDEA), and Euroheat & Power. Primary research conducted for this report included extensive interviews with key people such as CEOs, VPs, directors, and executives. After arriving at the overall market size, the total market was split into several segments and subsegments. The data triangulation and market breakdown procedures were employed to complete the overall market engineering process and arrive at the exact statistics for all segments and subsegments. The breakdown of profiles of primary respondents is depicted in the figure below.

Micromarkets are defined as the segments and subsegments of the global district cooling market included in the report.

Core competencies of the companies are captured in terms of their key developments, SWOT analysis, and key strategies to sustain their position in the market.

MarketsandMarkets projects that the market for district cooling will grow from USD 5.41 Billion in 2016 to USD 9.54 Billion by 2021, at a CAGR of 13.19% from 2016 to 2021. The demand for district cooling is increasing due to the growth in the demand for energy efficient cooling technologies. District cooling helps reduce greenhouse gas emission and refrigerant usage as compared to that of conventional cooling.

The district cooling market is segmented on the basis of production technique, application, and region. The absorption cooling segment is estimated to be the most widely used production technique to meet the increasing cooling demand as it utilizes waste energy. The absorption cooling segment accounted for the largest share and is projected to grow at the highest rate during the forecast period. Absorption cooling is an environment-friendly means of cooling. It helps reduce the use of electrically driven cooling in the energy system and also reduces carbon dioxide emissions.

On the basis of application, the market is segmented into commercial, residential, and industrial. The residential segment is projected to grow at the highest CAGR, due to increase in cooling demand owing to rapid climate change. The commercial application segment accounted for the largest share of district cooling market. Rise in global temperature and increase in pollution because of heavy construction activities have resulted into increase in demand for district cooling in commercial applications.

On the basis of region, the market for district cooling is segmented into Americas, Europe, Asia-Pacific, and Middle East & Africa. The district cooling market in the Middle East & Africa is projected to grow at the highest rate from 2016 to 2021, as countries in this region are witnessing an increase in demand for cooling, owing to high temperature and increasing investments in infrastructure projects. This would lead to a high demand for district cooling.

High upfront capital cost and non-synchronized development decisions are some of the factors that restrain the growth of the district cooling market.

Contracts & agreements, expansion, and acquisitions were the major strategies adopted by the most players in the market. Companies such as, Emirates Central Cooling System Corporation (UAE), National Central Cooling Company PJSC (UAE), and Emirates District Cooling LLC (UAE) were the key players who adopted these strategies to increase their production capacity, customer bases, and to stay ahead of competitors. Companies aim to increase their production capacity and the geographic presence further to cater to the increasing demand of their end customers.

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